LBS Bina plans aggressive launches

KUALA LUMPUR (Sept 14): LBS Bina Group Bhd (LBS) is planning "aggressive" launches this year until next year with more affordable and landed houses in the pipeline, said managing director Tan Sri Lim Hock San.

LBS' total landbank stands at 3,585 acres and the future gross development value (GDV) of the landbank is estimated at RM24.7 billion, Lim told reporters after the press briefing today.

"That is why we are going for aggressive launches this year and next year," he explained, citing that the future GDV is expected to keep LBS busy for at least 10 years.

He said that LBS will launch more affordable houses that most people can buy and easily secure mortgages from banks. "We will also build more landed properties in suburban areas next year to give buyers more choices."

Lim noted that the upcoming launches of LBS include Bandar Saujana Putra 21 (BSP21), a new township development in Dengkil and Ijok, Selangor, phase four of Desiran Bayu, Puchong and the "Perumahan Penjawat Awam 1Malaysia" (PPA1M) in Bukit Jalil.

Among these projects, Lim expects to launch the remaining two towers of BSP21 this year and next year as the response for the project has been overwhelming, he told TheEdgeProperty.com at the sidelines of the event.

Sitting on 21 acres of land within LBS' Bandar Saujana Putra, BSP21 comprises 10 blocks of serviced residences. Eight blocks of serviced residences have been launched with some 80% take-up achieved to date.

Lim pointed out that BSP21 managed to sell more than 100 units per month and continues to contribute to LBS' property sales.

LBS’ total property sales year-to-date recorded RM873 million, where a large portion of it came from BSP21, he added.

"In view of such overwhelming response, we could possibly launch the 9th tower this year, followed by the 10th tower in the first quarter of next year," he said, citing that hopefully all of the 2,602 units in BSP21 can be fully sold by the first half or second half of 2017.

The total GDV of the 9th and 10th towers in BSP21 is estimated at RM366 million with 620 units in total.

Meanwhile, LBS is targeting to launch phase four of Desiran Bayu early next month while pending an advertising permit and bank approval, Lim pointed out.

"Subject to approval, we are also planning to launch PPA1M early next year and kick-start the township development in Dengkil and Ijok by the third quarter of 2017."

Bernama also reported that LBS is disposing a 75% equity in MITCE Engineering Sdn Bhd (MITCE), held via MITC Sdn Bhd (MITC), in an inter-party deal worth RM225 million, to streamline operations.

For this purpose, MITC, has entered into a share sale agreement with ML Global Bhd (MGB), which is a 51.18%-owned subsidiary of LBGB.

After the completion of the agreement, MITCE would be owned by MGB, said Lim.

Proceeds from the disposal would be re-deployed as working capital for higher yielding core businesses.

Try out one of our super tools, the rental yield calculator, here.